Horngren's Cost Accounting u. An auto repair garage LO 1 4-18 ACTUAL COSTING, NORMAL COSTING, MANUFACTURING OVERHEAD. Destin Products uses a job- costing system with two direct cost categories (direct materials and direct manufacturing labour) and one manufacturing overhead cost pool. Destin allocates manufacturing overhead costs using direct manufacturing labour costs. Destin provides the following information: Budget for the Year Actuals for the Year Direct manufacturing labour costs $2,600,000 $2,540,000 Direct manufacturing overhead costs 2,210,000 2,311,400 Direct materials costs 1,800,000 1,740,000